Does this budget look ok? Planning to move to Auckland for working holiday : )

[frogs]

Hello!

I am planning to move to Auckland for a working holiday, and I would like to get some feedback on my budget. Below is what I've sorted out so far, but since this will be my first time in NZ I am sure I am missing something. It would be most appreciated if you could please point out anything I've missed, any corrections you have to what I've written, or anything you can think of in general! Really this is just a starting point for me, and I'd like to make sure I'm on the right course.

This is a basic monthly budget. It is just for me living in a room in a shared house, and only concerns the basics, so luxuries like alcohol/drugs, concert tickets, scuba diving etc are not included. I plan to buy a motorcycle, so guzzoline and insurance are included. However, since I plan to sell it at the end of my working holiday, I have not included the purchase price. I also haven't included expenses related to traveling to NZ, applying for the visa, and other one-time preparation things; this budget only concerns expenses while living in Auckland.

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My Basic Monthly Budget

• Rent: 900 (200/week + utilities)
• Groceries: 500
• Phone: 50
• Guzzoline: 135 (1500km/mo, $3/L, 3L/100km )
• Motorcycle Insurance: 85 ($1000/year? not sure...)
• Health Insurance: 100 (travel insurance from home country)
• Health/Wellness: 100 (haircut, toothpaste, medicine etc...)

Total Monthly Expenses: 1870

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Questions / Uncertainties

As you can tell there are a few things I'm not so sure about. Brief google research has told me that motorcycle insurance should be around $1000/year for a bike worth $10,000. But I'm planning to buy a much cheaper bike. But I'm a foreigner with no NZ driving experience. As long as this is not a severe underestimation, I'll be happy; it's just a number to work with.

Health insurance is something else I'm not so sure about. 100/month would be the cost of travel insurance if I were to buy it back in my home country. But is there a way for working holidayers to register for normal NZ health insurance? If so, would that be better/cheaper?

I've had some luck searching on trademe for a motorcycle. But are there purchase costs that are not immediately visible? For example, this bike is listed at $4750. But if I were to buy it, would I also need to pay any sort of ownership transfer fees or taxes? I would arrange for a professional mechanic to do a full pre-purchase inspection; would $200 be a reasonable price to expect for that service? I know this is a bit more of a motorcycle than poverty finance question, but if anyone has some knowledge to share, it would be most appreciated!

Please let me know what you think, and thanks in advance!

P.S. I'm calling it guzzoline cuz I couldn't figure out if you say petrol or benzene or gasoline these days : )

 

[missmacy118]

@frogs A $200 a week room in Auckland will be a small room in a not that great suburb.

$125 a week for food is limited, you will not be eating any treats, and you will have to get creative to make that work ($5.90 per meal).

You will also be spending half your monthly luxuries on the haircut (provided you're going to a local barber, not a high end one).

Overall, you will survive, but you will definitely be on struggle street.

 

[frogs]

@missmacy118 Regarding food, thanks for your tip! I'll consider upgrading to 150 or 175/week. Are there any resources that can break down the cost of a simple meal by specific ingredients in Auckland/NZ? Back home I spend significantly less than the typically recommended budget through a combination of strategic shopping and efficient cooking.

By "monthly luxuries" are your referring to the $100 Health/Wellness budget item? If a haircut is $50, that is ok! I plan to observe what excess I have in my monthly balance after these basic needs are met, and consider that my "luxuries" budget. Fulltime minimum wage monthly income should be around $3000, so I suspect that even if I'm not able to get fulltime hours, I'll have some money left over after basic expenses. Am I on the right line of thinking here?

 

[embemboo]

@frogs Countdown / New World are supermarkets that have online shopping so you can see grocery prices on there. Food can be quite dear but if you shop for in season foods you'll generally do OK. An example would be tomatoes, in summer as low as $3/kg, typically $5/kg but in winter $10- $12/kg

 

[frogs]

@missmacy118 Thanks for your reply! I've been browsing trademe and I see plently of rooms for 200/week, even some for less. Are these scams or do they have hidden costs? For reference I have linked a few below, all listed within the last 2 days.

https://www.trademe.co.nz/flatmates...tm?rsqid=604f15250b97440fb3d287416e5a226d-001

https://www.trademe.co.nz/Browse/Li...69&rsqid=2397f0285a0240009f5d2a78235a98d3-001

https://www.trademe.co.nz/flatmates...tm?rsqid=9597587b42e74da9a73865dffac6a042-002

https://www.trademe.co.nz/flatmates...tm?rsqid=9597587b42e74da9a73865dffac6a042-002

https://www.trademe.co.nz/flatmates...tm?rsqid=9597587b42e74da9a73865dffac6a042-002

Since I plan to buy a motorcycle, I don't mind being a bit further out from the city or away from a bus stop. I also don't know that I'll be working in the city, but let's assume that I will for the sake of this planning process.

I don't need much in general; for me being at home is for sleeping, playing videogames or watching movies, and cooking! I plan to maximize my stay in your beautiful country, so will be out of the house hopefully every day exploring and doing interesting things. So I really just need a functional room to serve as a a home base for this grand adventure!

 

[michael33]

@frogs Some of those locations are pretty far out, and it's worth noting that commuting over the bridge (i.e. to/from the North Shore) is a pain and can be pretty time consuming even on a motorbike. Have a look at the travel time on google maps at different times of day (including peak times) to get a feel. Also, some of those listings you've linked (which I realise are only examples) are more than 200 once bills are factored in.

In terms of food, 125 a week is absolutely doable if you're a little bit careful and make your food at home. Buy things on special, eat what's in season, have modest portions of meat, and make use of Asian supermarkets.

 

[lilith2006]

@frogs As another person pointed out, in Auckland housing price is all in the location. $200 could get you a very nice room in one of the new suburbs 1 hour out of the city, but you'll have trouble even getting a halfway decent room in central. An acquaintance of mine spends $340 to live in one room in a house just out of CBD. Try to find somewhere close to your work if you can. Commuting is honestly a pain in Auckland especially if you're on a motorbike because let's be honest these roads are not well designed for biking.

Also beware of leaky houses, which are an issue in Auckland, so when you visit older houses for viewings note if there's any bad smells or mould in the corners, and if there is avoid at all costs - it is not worth it even if it's cheap. I have gotten very, very sick from one in the past. This is one of the big reasons why you'll find such a big price gap between older homes for rent and newer - there's many renters who seek out only newer homes because they don't want to potentially deal with mould.

 

[fbcyp]

@frogs Manukau, Waitakere, and North Shore sub-cities are far out from Auckland CBD. IE 60min on motorcycle in rush hour. Your listings are expired so I don't know how safe the specific areas are.

 

[ubutyf]

@frogs Just to tell you everything is usually paid by week instead of by month, including salaries so keep that in mind.

Are you from Canada? How do costs compare for here vs Canada?

 

[abelievingman]

@ubutyf Although monthly isn't unheard of either, especially if you're a "contractor" (even if you mainly act as an employee). That's quite often been the case for me.

 

[jesusislord1076]

@frogs $200 per week for rent is the only one that's abit unrealistic. I see below you've added some links. Notice those don't include utilities which can fluctuate significantly.

 

[frogs]

@jesusislord1076 Thanks for the tip!

Most places I've seen on trademe say that utilities should be around $25/week, hence the $900/month figure I used in my budget. Is this realistic?

 

[praisestogod]

@frogs Nah man. 25 a week for power alone maybe, another 20 for internet but that gets cheaper with flatmates. Auckland also has water charges

 

[frogs]

@praisestogod Ok, so 25 for power, let's say 10 for internet, and how much should I plan for water charges?

That would be 35 + water charges per week

 

[ekim]

@frogs Motorcycle owner here!

Regarding motorcycle ownership transfer, once you’ve purchased the motorcycle you can just fill out this NZTA form (it notes there is no payment required):
https://transact.nzta.govt.nz/transactions/NoticeOfAcquisition/entry

For motorcycle insurance I would recommend using Kiwibike Insurance (they’re a broker) and you can get an online quote for various insurers using this form:
https://www.kiwibike.co.nz/quick-quote/

Regarding registration, expect to pay around ~$400 ish a year (depends on the bike and cc rating you end up getting) but there’s a table comparing the cost on NZTA’s website:
https://www.nzta.govt.nz/vehicles/licensing-rego/vehicle-fees/licensing-fees/

Feel free to DM if you have any questions!

 

[dlarge]

@frogs Others have mentioned this budget might be a bit tight in auckland - you could very easily make this work in a nice suburb of Hamilton or potentially Welly

 

[woolz]

@dlarge rent is even more than this in Welly typically

 

[babychristian10]

@frogs So if you work a 40hr week, minimum wage, you'll receive $768/week in the hand.

Rent $200
Food $140
Fuel $40 (commute and daily errands)
Phone $10
Utilities $50
Health insurance $25
Vehicle insurance $21.25

Leaves around $280 a week for personal care and entertainment, which should be doable.

One-off costs would be the motorbike, any on-road costs like registration (bout $400), warrant ($100ish), gear for yourself unless you already have some, inspection cost differs regionally but $200 should cover it. Also, living costs like a rental deposit e.g. 2 weeks in advance.

You can ask the seller to get an inspection or fresh warrant pretty easily, most decent people will cover one or the other.

If you're visiting soon, then make sure you bring some decent and warm clothing, especially to wear on the road.

 

[thomashanancy]

@frogs I would reccomend looking for a hostel that offers single rooms if your doing a working holiday, they are typically in the middle of the city, are small but you arent looking to settle long term and fill a house, social as they have people coming and going, flexible incase you decide to ditch Auckland early (staying in a house normally requires you to find a replacement and can cost you extra if you cant before you leave), within your budget, long term parking is a lot easier to find for a bike (some places will let you park it in the back/down an alley for free but you run the risk of it being stolen i suppose).

Depending what work your doing, hospo will normally proivide employees cheap/free food during a shift (we all give our mates preferential rates even if the business doesnt)

Car insurance is about right, motorcycles pay more in ACC levy as they are more dangerous.

Health insurance - being 100% honest, if your fit and healthy and arent going to be doing overly dangerous stuff like riding a high speed motorcycle, you probably dont need it but you do you. we are a first world country and the most foriegn/exotic disease your likely to get is home sickness.

Biggest question for you IMO would be why you need a motorcycle, there isnt a lot inbetween cities that you cant hitch a ride with fellow working holiday people doing the same thing, otherwise walking or bussing will get you around auckland no problem. if your planning on going to smaller city/towns to work then 100% a requirement.